domain of anarchy, is the vital principle by which alone ordered co-operation can be maintained in a system of divided labour, ought to be a permanent acquisition of the human mind. It means that economic life by divided labour is a business to be settled mainly between the multitude of individuals dividing the labour between them, and that planning which would prevent this spells disaster. Unfortunately this lesson was demonstrated under a dictatorship the political strength of which is nourished by a fanatical hatred of the market and a prophecy of salvation through its final destruction. Thus the surge of prosperity gained by re-admission of trading was a political peril to the Communist Government. In order to reassert its waning power, the Soviet Government therefore again went on the offensive in 1927. Private shops and enterprises were again destroyed and a vast programme of State enterprises was launched. Three years after this a new economic disaster forced Stalin once more to a retreat. Again the market was re-introduced, but this time State ownership in industry and commerce was fully retained. Thus the experience of the Soviets has now proved that, even though the State is owner of all enterprises, it yet cannot decide on its own accord what to produce, but has to rely on the profitability of sales to indicate the usefulness of every particular activity. Commercial management is now revealed as far more fundamental than the system of ownership, which can vary widely while the market persists. Clearly, for political reasons, the Soviet Govern- ment must do everything in its power to prevent 54